What is the role of insurance in a personal injury claim?

On Behalf of | Apr 21, 2016 | Car Accidents

There are several different phases of a personal injury claim and many times insurance companies are involved in the personal injury claim process. If you have suffered personal injuries in a car accident or other type of accident, you may wonder what the personal injury claims process looks like and what role insurance companies may play in the process.

First of all, a personal injury claim is usually to help a party wrongfully injured in an accident recover compensation for their damages following the accident. Damages can include medical expenses and lost wages immediately after the accident, or may also include ongoing medical care and lost-earning capacity. Pain and suffering damages are also commonly available. The personal injury claims process provides legal protections for victims injured in car accidents. Insurance companies are typically involved throughout the process.

It is important to document the medical care that you receive following a car accident. It is also important to document earnings lost as a result of the injuries suffered following a car accident. Following the review of the details of a case, a settlement demand is usually made, which allows some claims to be settled without the need to go to court. A settlement demand is usually submitted after the victim reaches maximum medical improvement, meaning the victim has recovered as much as possible in the circumstances and given the injuries they have suffered, which impacts the settlement demand amount. The parties may then negotiate a settlement and insurance companies are commonly involved.

If the parties are unable to settle, a different phase of the process may follow, including discovery, going to court or alternative dispute resolution. The goal of the personal injury process is to compensate injured victims for the harm they have suffered because of another party’s negligence, which is why a number of different parties and protections may be involved during the process.

Source: DMV.org, “Stages Of A Personal Injury Case,” Accessed April 18, 2016